In this paper, we have chronicled the development of sound localization system based on TDOA (Time Difference of Arrival). Acoustic Source Localization (ASL) is a technique used to track and locate the exact location of a sound source using an array of microphones. The concept of ASL uses sound signals captured from an array of microphones and they are processed using TDOA localization method to estimate the probable direction of sound source w.r.t to the microphone location. TDOA algorithm is a time delay estimation technique which estimates the time difference in the signal received at each microphone pair. These time delays obtained are then used in the Linear Least Squares (LSQR) Algorithm to estimate the source position w.r.t the microphone array. This system is implemented in real-time by using an on-board DSP processor TMS320C6748.